160 Ex-security, intelligence officials urge CLARITY Act

On June 2, 160 former U.S. national security, intelligence and law enforcement officials sent a letter to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer urging the Senate to advance the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act. The signatories framed digital asset oversight as a national security and law-enforcement priority and said stronger rules are needed to keep activity within U.S. oversight.

The letter, organized by the Blockchain Association, says the CLARITY Act would extend Bank Secrecy Act and sanctions obligations to digital commodity brokers, dealers and exchanges. It would also establish Treasury-led information sharing with the Justice Department, the FBI, the Drug Enforcement Administration and private companies to support investigations and asset recovery.

Signatories highlighted provisions they view as enforcement tools for prosecutors and investigators: temporary holds on suspicious digital-asset transfers, mandatory law-enforcement notification, reinforced compliance with court orders and expanded administrative seizure authority in major cases. The letter also outlines proposed anti-fraud measures, monitoring and reporting duties, transaction limits for kiosks and compliance requirements for certain centralized finance trading protocols.

The CLARITY Act passed the House in July 2025 by a 294-134 vote and moved out of the Senate Banking Committee on May 14 in a bipartisan 15-9 vote. The bill still requires a full Senate vote, possible House-Senate reconciliation if amended, and the signature of President Donald Trump to become law. President Trump has called for a durable digital asset framework that “cannot be undone,” and Senator Cynthia Lummis warned delays could push major crypto legislation to 2030.

The Blockchain Association posted the letter online and wrote that the responsible digital asset industry supports strong compliance, consumer protections and tools to combat illicit finance, urging the Senate to advance the CLARITY Act. Supporters argue the bill would reduce the risk that U.S.-based activity migrates to opaque foreign venues and would clarify sanctions expectations for distributed ledger messaging systems.

Some industry groups and investors have warned that U.S. rulemaking lags international efforts such as the European Union’s Markets in Crypto-Assets regulation and steps taken in the United Kingdom. Venture firm a16z Crypto has argued the United States could lose ground to those frameworks, and the advocacy group Stand With Crypto has called on the full Senate to pass the bill.

The Senate must now decide whether to schedule a floor vote on the CLARITY Act and whether to accept any amendments that could prompt reconciliation with the House before the measure can reach the president’s desk.